A DEAL which could see up to 2,000 jobs created in a new factory on the former Jaguar site at Browns Lane, Coventry, is due to be signed by the end of the summer.

Talks are continuing between Jaguar and Peter de la Marche, whose firm Delamar is in the process of buying the plant.

Delamar, a construction firm which has chosen the site to build its first factory, opened negotiations to buy Browns Lane in March.

Both sides have said that the deal is still going to plan but have confirmed a deal has not yet been signed.

Mr de la Marche, chief executive of Delamar, said: "Our negotiations with Jaguar regarding the purchase of Browns Lane are continuing and are on course.

"Given the size of the investment and the level of funding involved, there are a number of complexities and therefore involve a number of parties.

"This inevitably takes time and we are continuing to work alongside Jaguar to finalise the deal towards the end of the summer as per our original agreement."

A spokesman for Jaguar echoed the comments made by Mr de la Marche, and added that the deal was "on track".

Mr de la Marche believes the plant is perfect for his firm, which has developed a manufacturing technique using revolutionary new materials, and will enable the mass production of buildings ranging from houses to offices, multi-storey buildings and hospitals.

Delamar, which has already bought its first major piece of machinery, could be up and running by 2007.